There are a number of different types of mortgages available that we can process, when combined with the ‘industry speak’ used to describe them they can confuse even the most astute rookie. By dealing with one of our mortgage brokers all this jargon can be simplified, we can compare and contrast the many different mortgage products from the lenders on our panel to find out which type of loan would be the best suited to your Client.
Owner Occupied Residential
We will compare discounted Home Loans that offer more than basic features. Loans on owner Occupied purchases are available up to 95% LVR + Mortgage Insurance.
Investment Loans Residential
These kinds of loans are now becoming complicated as to which funder can provide the best outcome for the client. Maximum LVR’s are still available to 95% of property value.
If your Clients are paying a high interest rate lets see what is available to refinance them to a lower rate. Maximum LVR’s on both Owner Occ and Investment is 90% of property value..
Although offering much less flexibility than standard prime loans, these loans are designed for applicants with past credit issues ranging from defaults, judgements and discharged bankrupts. The maximum loan value is 95% on a purchase and up to 90% on a refinance depending on security location.
Low Doc Home Loans are suitable for people (most commonly self-employed or casual workers) who can afford to take out a home loan, but are not in a position to prove their income, have variable income, or do not have tax returns or financial reports.The maximum loan value is 90% on a purchase and up to 90% on a refinance depending on security location.
These categories of loans are for clients that do not meet standard lending criteria. Many Borrowers have become a victim of Lenders tightening their credit policies since the GFC to keep the cost of their funding down. A vast majority of these borrowers are more than capable of servicing a loan but for one reason or another they don’t comply with prime lender policies.
Vacant land loans enable customers to borrow in order to purchase land, with the intention of building a home on that land at a later stage. In some cases this can be considered business lending, depending on how the land is zoned.
Suitable not only for the construction of new homes, but also for major renovations to an existing home. Whilst a standard home loan necessitates a lump sum payment at agreement signoff, construction loans are usually drawn down in stages.
Commercial Property Loans
Commercial Loans cover most commercial funding options and are available in Low Doc Loans
and No Doc options, credit impaired
and also lending to Rural, Development, SMSF, Industrial & Specialised Securities Maximum Loan Values available are up to 75% LVR.
The restriction to buy property without borrowing has now been removed on smsf. Small to medium sized Self managed superannuation funds can now borrow money to purchase either residential or commercial property.
The National Rental Affordability Scheme (NRAS) is an Australian Government initiative, delivered in partnership with the State and Territory governments, to increase the supply of affordable rental housing. These properties need non standard loans.
If you clients have multiple debts from various sources or institutions such as a home loan, personal loan, credit card or other high interest loans, and are having trouble paying these off, then it could make sense to roll these debts together with their mortgage.